\n Major stocks markets across Asia Pacific region sank Monday amid mounting fears of a renewed trade war between the world\u2019s two largest economies, after US President Donald Trump threatened to impose new triple-digit tariffs on Chinese imports.\n <\/p>\n
\n Trump\u2019s threat followed Beijing\u2019s tightening of its control on rare earths, a group of critical minerals essential in the production of a wide range of electronics, automobiles and semiconductors.\n <\/p>\n
\n Those restrictions came after the US introduced a slew of its own export controls targeting China in late September, despite the two sides seemingly making progress in trade talks over the summer.\n <\/p>\n
\n China\u2019s sweeping new restrictions, some of which\ufeff won\u2019t take effect until November, could deal a huge blow to East Asian economies, such as Japan, South Korea and Taiwan, which play critical roles in the global tech and artificial intelligence supply chain, as well as the auto industries.\n <\/p>\n
\n \ufeffIn early trade Monday, South Korea\u2019s benchmark index KOSPI plunged 1.5%. Taiwan\u2019s TAIEX plummeted 2.3%. Hong Kong\u2019s Hang Seng Index sank 2.4%. China\u2019s Shanghai composite index dropped 1.6%. Australia\u2019s S&P\/ASX 200 slid 0.5%.\n <\/p>\n
\n The Tokyo stock exchange was closed on Monday for a public holiday.\n <\/p>\n
\n Trump appeared to have been caught off guard by China\u2019s latest \u201chostile\u201d move and on Friday said he would impose an additional 100% tariff on Chinese goods starting November 1, immediately reigniting the prospect of a damaging trade war between the world\u2019s two top economies.\n <\/p>\n
\n The move would raise total duties on imports from China to around 130% \u2013 effectively a trade embargo and just shy of the 145% peak reached at the height of the trade war this spring.\n <\/p>\n
\n The rapid escalation of trade tensions sank US stocks on Friday, with the S&P 500 and Nasdaq recorded their worst day since April. The Dow also suffered its steepest drop since May.\n <\/p>\n
\n On Sunday, Beijing fired back, vowing countermeasures if Trump makes good on his threat. China\u2019s commerce ministry said the country is \u201cnot afraid\u201d of a trade war, but urged further negotiations between the two sides to resolve the issues.\n <\/p>\n